Nordstrom (JWN, $17.50) slashes full-year profit forecast

Nordstrom shares fell on Friday, after the retail company lowered its full-year profit outlook.

Nordstrom is now expecting its earnings for its fiscal 2022 year (ending February) to come in the range of $1.50 to $1.70 per share, well below its prior forecast of $2.13 to $2.43 per share. Holiday sales fell to below prepandemic levels. Sales for the nine weeks ending on December 31 slipped -3.5% from last year, with its discount Nordstrom Rack division undergoing a -7.6% decrease.

The company projects full year sales growth at the lower end of its previous forecast of between 5% and 7%.

"The holiday season was highly promotional, and sales were softer than prepandemic levels. While we continue to see greater resilience in our higher income cohorts, it is clear that consumers are being more selective with their spending given the broader macro environment," mentioned CEO Erik Nordstrom. "Still, our team executed well, and we enter 2023 in a stronger position as we prioritized starting the new fiscal year with clean inventory levels, even if this required more markdowns than planned."